Gary's Pipe and Steel Company expects sales next year to be $990,000 if the economy is strong, $695,000 if the economy is stable, and $384,000 if the economy is weak. Gary believes that there is a 15 percent chance that the economy will be strong, a 50 percent chance of a stable economy, and a 35 percent chance of a weak economy.

Required:

What is the expected level of sales for the coming year?

Expected level of sales____

Answer rating: 100% (QA)

To calculate the expected level of sales we need to weight each possible sales ... View the full answer